Question

If a boat depreciates in value according to the simple interest formula Y=20,000(.92)^2 find the rate of decay. Write as a percentage.

Answer 1

Answer:

16%

Step-by-step explanation:

A boat depreciates in value according to the simple interest formula:

Y=$20,000*(0.92)^{2}$ = 16,928

From the above exponential function, we can see that:

The boat depreciates with the base number is: 0.92 and the initial value is 20,000 at the beginning,

So  the rate of decay which can be written as a percentage:  

1 -  The value after 2 units of time / the initial value

= 1- (16,928 / 20,000)

= 1  - 0.84

= 0.16

= 0.16*100% = 16%

Answer 2

Answer:

$28,000

Step-by-step explanation: